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Hi friend 👋,
Imagine collecting $12,380 every year on a $10,000 investment.
That’s a 124% yield on your original purchase price
And your income grows no matter what happens in the market
You’re probably assuming this is a tobacco business, like Altria.
Or a company like British Tobacco.
We are currently sitting on a profit of almost 100% for this company.
On top of this, British Tobacco pays us a yearly dividend of 9.2% (!) based on our cost price.
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But what we’re talking about here is Egg McMuffins and Happy Meals.
The company, as you’ve guessed, is McDonald’s ($MCD).
If you’ve been keeping up, you know it’s been one hell of a dividend grower.
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But I’m not here to tell you to buy it today (I have something better).
Sure, McDonald’s is arguably the best fast-food business ever built.
95% of the company’s restaurants are run by independent franchisees…
While management just sits back collecting rent and a percentage of sales.
That’s how early investors get a steady 124% yield every single year.
The only problem is that if you’re a new investor, you get only 2.7%.
Is that enough to cover your living expenses with inflation at 4%?
That’s where the second company comes in.
It is at the stage where McDonald’s was 30 years ago.
And it’s got the things we love in a dividend grower…
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High switching costs.
Elite returns on capital.
Excess cash returned to shareholders non-stop.
How does this company make money?
It sells natural sweeteners to packaged food brands.
And those brands can’t switch ingredient suppliers easily.
Why?
Well, changing the ingredients changes the taste of products.
This means they risk losing millions of loyal customers.
Food conglomerates will do anything to avoid this outcome.
That’s why they pay our company three times more for their ingredients.
And you guessed it: This pricing power means high returns on invested capital (ROIC).
For over a decade, this company has posted an annual ROIC of 10%+.
And if you’re an income-focused investor, it gets even better.
The dividend yield is roughly 3x higher than the market average.
What’s more?
The annual payout has grown by more than 12% for 15+ years.
At that rate, if you keep reinvesting, your paycheck doubles every 6 years.
But that’s just passive income...
The stock has grown by roughly 7% every year.
And if you combine capital appreciation with dividend reinvestment...
Here’s what happens in 10 years:
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It means every $10,000 stake turns into $30,000, and your yield on cost is 15%.
Many investors have bought this company at fair value, or more.
But if you act fast?
You can buy the stock at a significant discount today.
It is currently trading at least 30% below its intrinsic value.
And the smart money knows a bargain when they see one.
Take the director of a $7.3 trillion private wealth manager.
He just bought more of the stock again…
And many great investors are quietly accumulating shares.
What do they know about this stock that you don’t?
I put everything you need to know in a new research report.
It’s not for sale.
But you can get it for free today.
How?
Give Compounding Dividends a try.
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